How does "share with team" docs option works?

I want to add all kind of related docs to my project, and want these settings to be shared with anyone who clones the project repo.
I saw there is an option, when adding a doc, to “share with team” - but it didn’t create any configuration file or settings file in my project. So how these docs are being shared with the team, and what is a “team” in the context?

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